China Ruins US Plans to Bring Venezuela to Its Knees

[TaiShang]

China Ruins US Plans to Bring Venezuela to Its Knees
11.04.2015
Ekaterina Blinova

China is counterbalancing the US' efforts to bring Venezuela to its knees: Beijing will lend Caracas around $10 billion while the country teeters on the brink of bankruptcy.

While the United States is waging an "economic war" against Venezuela and its President Nicolas Maduro, China is likely to obliterate Washington's plans to bring the Latin American nation to its knees; Beijing will lend Caracas around $10 billion in order to support the country's economy.

On March 9, 2015, US President Obama issued an Executive Order declaring Venezuela "an unusual and extraordinary threat to the national security and foreign policy of the United States."

The Venezuelan government has also come under pressure from its opposition, as protest rallies have been taking place in Caracas since last year.

Venezuela is teetering on the verge of bankruptcy, facing the threat of sovereign default. The fall in oil prices is adding fuel to the fire.

According to the Venezuelan president, Washington could be behind the slide in oil prices, claiming that the US is waging an economic war against Russia and Venezuela.

Meanwhile Beijing considers the Latin American country exceptionally lucrative for its investment interests. China has already provided Venezuela with $45 billion in exchange for oil and fuel and it will lend Caracas two five-billion-dollar loans in coming months.

A half of the $10 billion will be provided as a part of a bilateral financial deal, and another $5 billion for the development of oil fields.

Venezuela and Cuba have not missed a chance to criticize US foreign policy toward Latin America during the 7th Summit of Americas on Friday.

Venezuela came to the summit with a petition signed by over 10 million people urging Washington to lift the latest sanctions imposed on the country's government officials. The petition also calls upon the White House to revoke its Executive Order denouncing the Latin American country as a "national security threat".

"President Obama has made the worst mistake of his six-year presidency in foreign policy towards Latin America," Nicolas Maduro said in an official speech Thursday, claiming that Venezuela "isn't [Washington's] backyard anymore."



Read more: China Ruins US Plans to Bring Venezuela to Its Knees / Sputnik International

 

[Tshering22]

That's a huge amount!

But will Venezuela be able to repay this credit? Their economy has been in doldrums for a long time. Archaic leftist policies with a poorly managed welfare state process has led to a lot of shortfalls for the otherwise very capable Caracas.

I hope Indian government also signs oil procurement agreements with them directly. We badly need to diversify our oil dependence from the Middle East; depending 80% on one region that too with so many wars going on there is not a good thing.

Russia, Iran, Venezuela, Nigeria, Vietnam, Myanmar, Brunei and Indonesia are our best bets. Anyone else rich in oil and friendly as well.

 

[LittleFish]

US has a blind faith in sanctions and threats. The more sanctions they impose on others, the less they'll achieve, for today US is not the one who can simply seize the world solely.We will help them resist irrational economic bullying.

 

[jung41]

That's a huge amount!

But will Venezuela be able to repay this credit? Their economy has been in doldrums for a long time. Archaic leftist policies with a poorly managed welfare state process has led to a lot of shortfalls for the otherwise very capable Caracas.

I hope Indian government also signs oil procurement agreements with them directly. We badly need to diversify our oil dependence from the Middle East; depending 80% on one region that too with so many wars going on there is not a good thing.

Russia, Iran, Venezuela, Nigeria, Vietnam, Myanmar, Brunei and Indonesia are our best bets. Anyone else rich in oil and friendly as well.

China is lending money first and then it will take over venezuela by its mighty military for not paying debts

 

[C130]

keeping Venezuela afloat with loans that are highly profitable for China. you really showed us

meanwhile in Venezuela nothing is changing for 90% of Venezuelans. It's actually getting worse and worse.
These countries are getting killed by cheap oil prices - Oct. 30, 2014
if oil doesn't get back up to $120 a barrel Venezuela is going to be hemorrhaging money it doesn't have. It's going to need $10 billion every year from China just to balance the books. which it's paying back with oil, and that still doesn't change the fact life is still going to be miserable for the average Venezuelan.


The 29 Most Miserable Countries In The World - Business Insider


Venezuela is all bark and no bite.

UPDATE 1-Venezuela confirms recession, inflation hits 63.6 percent in Nov| Reuters

recession. rampant inflation which I wouldn't be surprised becomes hyperinflation like Zimbabwe in the next few years. shortage of food and basic supplies which has forced queue lines that last for hours and you have to be fingerprinted. lol.

 

[LittleFish]

That's a huge amount!

But will Venezuela be able to repay this credit? Their economy has been in doldrums for a long time. Archaic leftist policies with a poorly managed welfare state process has led to a lot of shortfalls for the otherwise very capable Caracas.

I hope Indian government also signs oil procurement agreements with them directly. We badly need to diversify our oil dependence from the Middle East; depending 80% on one region that too with so many wars going on there is not a good thing.

Russia, Iran, Venezuela, Nigeria, Vietnam, Myanmar, Brunei and Indonesia are our best bets. Anyone else rich in oil and friendly as well.

It is not the first time we lend them money and we had successful deals before, they can pay in oil or other resources.
And as for oil, isn't india abundant in oil？ You have such a huge EEZ in Indian ocean

 

[TaiShang]

US has a blind faith in sanctions and threats. The more sanctions they impose on others, the less they'll achieve, for today US is not the one who can simply seize the world solely.We will help them resist irrational economic bullying.

Yes, that seems like the pattern recently. That is probably because the neo-colonialist regime is less capable or others are more capable. Maybe gone are the days when the US used to install a dictator in Latin America anytime some US senator needed blood money for election campaign or family business.

US sanctions are getting toothless because other nations are getting more resilient. Also, the US regime has lost most of its political and economic strength and what remains is a corrupt but very advanced military. However, there is limits to what you can do with military that is not backed by political and economic power.

 

[C130]

Yes, that seems like the pattern recently. That is probably because the neo-colonialist regime is less capable or others are more capable. Maybe gone are the days when the US install a dictator in Latin America anytime some US senator needs blood money for election campaign or family business.

US sanctions are getting toothless because other nations are getting more resilient. Also, the US regime has lost most of its political and economic strength and what remains is a corrupt but very advanced military. However, there is limits to what you can do with military that is not backed by political and economic power.

blood money? isn't what China is doing the same?? instead of blood money you are getting blood oil Venezuela sure is prospering right now. I'm sure that $10 billion loan is really going to get Venezuela out of the mess they made


and if you can clarify and prove there is a so called "economic war" being wagged against Venezuela please do show some evidence.

China is only delaying the inevitable.

 

[Pulsar]

America tried to bring Iran to its knees - Failed!

America tried to bring Russia to its knees - Failed!

America tried to bring Venezuela to its knees - Failed!

Guess what? It's America which has become a failed state!

 

[Tshering22]

Yup, better to even out our bets. I see middle east being unstable for next 2 decades. Gold and black gold might put a lot of strain on our economy. By dealing with Venezuela we might also get some leverage with US too.

We are not really furious on buying gold bullion. I am not talking about the gold meant for people's use but the one meant for our federal reserve. We really need to increase the purchase of federal gold the way Russia and China are hedging their bets. And asking temples gold is not the way to do it. We are already the largest consumer gold buyer but are nothing when it comes to federal gold purchase.

The PM's plan of creating fuel reserves for both peace and war times is a smartly thought and well-planned initiative. The Geological Survey of India must ramp up its oil exploration activities in the Arabian Sea and IOR regions as per the international law permits.

Creating underground strategic oil and gold reserve should be our top priority. Oil can only be hedged if we have enough sources of assured supply which comes from these countries I just mentioned: Iran, Venezuela, Russia, Nigeria, Turkmenistan, Uzbekistan, Kazakhstan, Vietnam, Malaysia, Indonesia and Brunei. Also, OVL should ramp up oil exploration in Brazil, Argentina and rest of South America on a war footing to (not sell to third party) extract and send oil back to the strategic reserves.

In addition, looking at the tensions in Middle East, India, Japan, Korea and China must come together as the biggest Asian economies to pressure OPEC to stop charging us the unjust 'Asia Premium' which only adds to our bill of oil. It is pure highway robbery.

Right now we are so effing vulnerable that if Saudi goes kaput, everything that the PM and his team are working on will get ruined.

We need options ASAP.

It is not the first time we lend them money and we had successful deals before, they can pay in oil or other resources.

And as for oil, isn't india abundant in oil？ You have such a huge EEZ in Indian ocean

We are only ramping up our oil exploration which was nothing in the last 10 years (thanks to a useless regime earlier). We import about 68% of our oil from abroad. There have been massive oil discoveries, though we consume so much that it won't be drastically changing our import scenario.

Your method is good; oil for credit and development. A win-win situation.

blood money? isn't what China is doing the same?? instead of blood money you are getting blood oil Venezuela sure is prospering right now. I'm sure that $10 billion loan is really going to get Venezuela out of the mess they made


and if you can clarify and prove there is a so called "economic war" being wagged against Venezuela please do show some evidence.

China is only delaying the inevitable.

Not meaning to intrude in your conversation man, but tell me, what's the historical dislike between USA and Venezuela?


I mean it may be socialist (so is Sweden in Europe) but surely that has nothing to do with the dislike between your two countries. Have heard a lot about you being some sort of adversaries but not really understood why and on what basis.

 

[Beast]

That's a huge amount!

But will Venezuela be able to repay this credit? Their economy has been in doldrums for a long time. Archaic leftist policies with a poorly managed welfare state process has led to a lot of shortfalls for the otherwise very capable Caracas.

I hope Indian government also signs oil procurement agreements with them directly. We badly need to diversify our oil dependence from the Middle East; depending 80% on one region that too with so many wars going on there is not a good thing.

Russia, Iran, Venezuela, Nigeria, Vietnam, Myanmar, Brunei and Indonesia are our best bets. Anyone else rich in oil and friendly as well.

You forget Venezuela has plenty of oil?

 

[C130]

America tried to bring Iran to its knees - Failed!

America tried to bring Russia to its knees - Failed!

America tried to bring Venezuela to its knees - Failed!

Guess what? It's America which has become a failed state!

yeah I bet everyone is dieing to immigrate to these non failed countries.

America hasn't done jack crap to Venezuela. they've brought their dire situation on themselves.

 

[Khalid Newazi]

And as for oil, isn't india abundant in oil？ You have such a huge EEZ in Indian ocean

Cost of extracting that oil is too much, the price needs to increase for them to gain anything or even meet ends of such investments.

 

[C130]

We are not really furious on buying gold bullion. I am not talking about the gold meant for people's use but the one meant for our federal reserve. We really need to increase the purchase of federal gold the way Russia and China are hedging their bets. And asking temples gold is not the way to do it. We are already the largest consumer gold buyer but are nothing when it comes to federal gold purchase.

The PM's plan of creating fuel reserves for both peace and war times is a smartly thought and well-planned initiative. The Geological Survey of India must ramp up its oil exploration activities in the Arabian Sea and IOR regions as per the international law permits.

Creating underground strategic oil and gold reserve should be our top priority. Oil can only be hedged if we have enough sources of assured supply which comes from these countries I just mentioned: Iran, Venezuela, Russia, Nigeria, Turkmenistan, Uzbekistan, Kazakhstan, Vietnam, Malaysia, Indonesia and Brunei. Also, OVL should ramp up oil exploration in Brazil, Argentina and rest of South America on a war footing to (not sell to third party) extract and send oil back to the strategic reserves.

In addition, looking at the tensions in Middle East, India, Japan, Korea and China must come together as the biggest Asian economies to pressure OPEC to stop charging us the unjust 'Asia Premium' which only adds to our bill of oil. It is pure highway robbery.

Right now we are so effing vulnerable that if Saudi goes kaput, everything that the PM and his team are working on will get ruined.

We need options ASAP.



We are only ramping up our oil exploration which was nothing in the last 10 years (thanks to a useless regime earlier). We import about 68% of our oil from abroad. There have been massive oil discoveries, though we consume so much that it won't be drastically changing our import scenario.

Your method is good; oil for credit and development. A win-win situation.




Not meaning to intrude in your conversation man, but tell me, what's the historical dislike between USA and Venezuela?


I mean it may be socialist (so is Sweden in Europe) but surely that has nothing to do with the dislike between your two countries. Have heard a lot about you being some sort of adversaries but not really understood why and on what basis.

dislike?? I dislike Chavistas. I dislike them because all they do everyday is blame gringos and imperialism for their problems.

socialism is crap especially when it ran by quacks like Chavez and now Maduro.

they'll blame everyone else before they say 21st socialism was a failure because of Chavez.

thanks China the ride will continue. maybe next time you can actually use that money to help them become self sufficient to grow their own food in Venezuela and make their own toilet paper

 

[TaiShang]

Cost of extracting that oil is too much, the price needs to increase for them to gain anything or even meet ends of such investments.

I guess Venezuela would be happy to decouple from depending too much on the US for its crude export. Hence, diverting a considerable percent of the existing production to China would

1. help Venezuela to decrease its reliance on Washington and
2. help China to diversify its energy sources, decreasing its reliance on the Gulf (especially, Saudi Arabia).